Omega Terminates Discussions with Potential Offerors - 16.4.08

On 7 February 2008, the board of Omega announced that it was in discussions with a number of parties who had expressed an interest in acquiring the Company.  Since that time the board has pursued discussions with the potential offerors and whilst the parties have indicated interest in acquiring the Company at a premium to the current share price, the board believe that the proposed indicative offers undervalue the long term value inherent in the Company and have decided to terminate talks with all parties. The board therefore announces that the Company is currently no longer in talks regarding a possible takeover.

The full press release is available here.

Further to the announcement on 13 March 2008, the board can confirm that trading by the Omega Group in the current financial year continues to be strong and in line with the directors' expectations and the board is confident of the future prospects of the business. In particular, Omega US, the group's US insurance company, is now eligible to write surplus lines business in 24 states with other approvals expected shortly. Omega US is successfully building upon the Group's established key trading relationships in its areas of focus and income is developing in line with its business plan.

Walter Fiederowicz, Chairman of Omega, commented:

"We went into bid talks with an open mind, fully accepting that if a party would
pay the right price for our franchise today then we would act accordingly in the
best interests of shareholders. Our people and our business have come through
quite extensive due diligence in the best light, but we do not believe that bidders' valuations adequately reflect the value of Omega today and the value of
what we are building in Bermuda and in the US. The board has therefore decided to terminate these discussions at this point in time."